HomeMy WebLinkAbout16-010CITY OF LAKEVILLE
RESOLUTION NO. 16-10
RESOLUTION DECLARING THE OFFICIAL INTENT OF THE CITY OF LAKEVILLE
TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF BONDS
TO BE ISSUED BY THE CITY
WHEREAS, the Internal Revenue Service has issued Treasury Reg. 1.150-2 (the "
Reimbursement Regulations") providing that proceeds of tax-exempt bonds used to reimburse
prior expenditures will not be deemed spent unless certain requirements are met; and
WHEREAS, the City expects to incur certain expenditures that may be financed
temporarily from sources other than bonds, and later reimbursed from the proceeds of tax-
exempt bonds; and
WHEREAS, the City has determined to make this declaration of official intent
("Declaration") to reimburse certain costs from proceeds of bonds in accordance with the
Reimbursement regulations; and
WHEREAS, the total estimated general obligation bonds for 2016 are $34,220,000.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lakeville,
Minnesota as follows:
1. The recitals set forth above are incorporated herein.
2. The City proposes to undertake the following projects (the "Projects"):
a. #15-02 2015 Street Reconstruction (Phase II)
b. #15-02 2015 Watermain Replacement (Phase II)
c. #16-04 Highview Avenue (CR70-South City Limit)
d. #16-02 2016 Street Reconstruction
e. #16-02 2016 Watermain Replacement
f. #15-12 202nd Street/Hamburg Avenue Intersection
g. #15-16 Lift Station #6 Replacement
h. #13-09 Dodd Blvd: 1941 Street to 1851 Street
i. #14-10 Kenwood Trail: Dodd Blvd to 185th Street
j. #15-10 Well #21 Construction
3. The City reasonably expects to reimburse the expenditures made for certain costs of the
Projects from the proceeds of bonds in an estimated maximum principal amount of the
following:
a. #15-02 2015 Street Reconstruction (Phase II) - $8,100,000
b. #15-02 2015 Watermain Replacement (Phase II) - $3,555,000
c. #16-04 Highview Avenue (CR70-South City Limit) - $420,000
d. #16-02 2016 Street Reconstruction - $9,350,000
e. #16-02 2016 Watermain Replacement - $3,200,000
f. #15-12 202nd Street/Hamburg Avenue Intersection - $200,000
g. #15-16 Lift Station #6 Replacement - $720,000
h. #13-09 Dodd Blvd: 1941 Street to 1851 Street - $2,500,000
i. # 14-10 Kenwood Trail: Dodd Blvd to 1851 Street - $5,300,000
j. #15-10 Well #21 Construction - $875,000
The City may declare other separate statements of reimbursement intent in connection with
specific public improvements projects as they are initiated under Minnesota Statutes,
Chapters 429 and 444, or for other capital projects, with the understanding that such
additional declarations of reimbursement intent will supplement this resolution. All
reimbursed expenditures will be capital expenditures, costs of issuance of the bonds, or other
expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Reimbursement
Regulations.
4. This Declaration has been made no later than 60 days after payment of any original
expenditure to be subject to a reimbursement allocation with respect to the proceeds of
bonds, except for the following expenditures: a) costs of issuance of bonds; b) costs in an
amount not in excess of $100,000 or five percent of the proceeds of an issue; or c)
"preliminary expenditures" up to an amount not in excess of 20 percent of the aggregate issue
price of the issue or issues that are reasonably expected by the City to finance the project for
which the preliminary expenditures were incurred. The term preliminary expenditures"
includes architectural, engineering, surveying, bond issuance, and similar costs that are
incurred prior to commencement of acquisition, construction or rehabilitation of a project,
other than land acquisition, site preparation, and similar costs incident to commencement of
construction.
5. This Declaration is an expression of the reasonable expectations of the City based on the facts
and circumstances known to the City as the date hereof. The anticipated original
expenditures for the Projects and the principal amount of the bonds described in paragraph 3
are consistent with the City's budgetary and financial circumstances. No sources other than
proceeds of bonds to be issued by the City are, or are reasonably expected to be, reserved,
allocated on a long term basis, or otherwise set aside pursuant to the City's budget or
financial policies to pay such Project expenditures.
6. This Declaration is intended to constitute a declaration of the official intent for the purposes
of the Reimbursement Regulations.
ADOPTED by the Lakeville City Council this 4th day of January, 2016
CITY OF LAKEVILLE
Matt dttle, Mayor
ATTEST:
Charlene Friedges, City Irk
VOTE
Little
Anderson
Davis
LaBeau
Swecker
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lir
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SK
Nay
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Abstain
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Absent
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